MADISON - Wisconsin hospitals make a significant impact on the state's economy, generating more than $22 billion annually in economic activity and employing more than 100,000 people in communities throughout the state, according to a study released recently by the University of Wisconsin-Extension and the Wisconsin Hospital Association.

The study, "Healthy Hospitals, Healthy Communities - the Economic Impact of Wisconsin Hospitals," reports the health sector is an economic mainstay that provides stability and growth, and remains less sensitive to economic downturns than other industries. Equally important is the number of new jobs and the above-average wages hospitals provide, says Andy Lewis, community development specialist with the Center for Community and Economic Development at the University of Wisconsin Extension.

In 2006, hospitals were among the top 10 employers in 44 of 72 counties in Wisconsin, and among the top five employers in 20 counties.

Hospital contributions to local economies often are overlooked in terms of the number of people they employ, the impact of hospital purchases and the impact of employee spending and tax payments, said Steve Brenton Wisconsin Hospital Association president.

The ripple effect of the health care sector throughout Wisconsin's economy is enormous, because hospitals not only are tied to the health of our communities, but also to the health of our state's economy, Brenton said.

In addition to the workforce directly employed by hospitals, the study calculated economic multipliers and estimated hospitals indirectly account for nearly 90,000 additional jobs in the state, because they purchase goods, services and bricks and mortar from other businesses in their communities.

With the multiplier effects included, hospitals support more than $22 billion in economic activity, according to Steve Deller, community development economist with UW-Extension.

Funds spent by hospitals to buy goods and services flow to other local and regional businesses and industries and then ripple through the states entire economy. For example, hospitals support more than $651 million in retail trade revenues each year in Wisconsin. Additionally, it is estimated that the hospital sector generates more than $923 million in state and local tax revenues, which is largely used to fund state programs.

According to the study, a strong health care network also adds to the attractiveness of a community as a place to live or locate a business. Wisconsin is consistently among the top-ranking states in health care quality. Hospitals in rural areas are a source of high-tech jobs for young people who otherwise might leave rural communities, the study showed.

"We can't overlook the fact that rural hospitals provide an anchor for other health care jobs, such as physicians and pharmacists, who in the absence of a hospital, might not be available," Matthew Kures, GIS specialist at UW-Extension and contributor to the report, said.